Tools

Gratuity Calculator

Calculate gratuity with tax exemption limits

Private sector: Gratuity = (15 × Last Salary + DA × Years) ÷ 26. Tax-exempt up to ₹25 lakh.

₹50,000
1000
5000000
₹0
0
5000000
15Y
5
40
0M
0
11

If ≥ 6 months, it rounds up to the next year

Total Gratuity

₹4,32,692

Exempt: ₹4,32,692

Gratuity Amount

₹4,32,692

Tax-Exempt

₹4,32,692

Taxable Portion

₹0

Completed Years

15 years

Last Salary + DA

₹50,000

Gratuity Growth
Calculation Details

Formula Used:

Gratuity = (15 × ₹50,000 × 15) ÷ 26

= ₹4,32,692

Total Gratuity

₹4,32,692

Tax-Exempt (Sec 10(10))

₹4,32,692

Max ₹25 lakh

Taxable Amount

₹0

Added to income

Eligibility

  • Minimum 5 years of continuous service required
  • Applicable to establishments with 10+ employees
  • Service ≥ 6 months beyond completed years rounds up
  • Maximum exemption: ₹25 lakh (as of 2024)
Quick Facts

Employee Type

Private

Basic + DA

₹50,000

Completed Years

15

Gratuity

₹4,32,692

Tax-Free

₹4,32,692

Per Year

₹28,846

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